Sjofors and Partners stand out as a pioneering market research agency, with a sharp focus on strategizing pricing to maximize profits. By blending the strengths of artificial intelligence with extensive real-world business acumen, they empower enterprises to achieve unprecedented growth. Their approach is both scientific and creative, ensuring quick and significant profit increases for their clients. Among their prestigious clientele are industry like Electrolux, BNI, and TripAdvisor, a testament to their effective methods.

Sjofors and Partners’ Interpretation of the Fundamentals of Pricing

The vast majority of companies use a subpar process for pricing. Either they set prices by cost-plus, meaning they calculate the cost of their product or service and consequently add a margin to that cost. The margin these companies use is often based on a rule-of-thumb in their industry. Some industries add a margin as low as 15% on top of cost, others double cost (so a 100% margin), while other industries might mark up three times, five times, or even ten times the cost. None of these has anything to do with the value the product or service delivers to its customers. Many companies simply guess what they think their customers are willing to pay, and often call this guess the “market price” but rarely do they actually know what the market pays for products or services similar to a company’s offering, even if prices are available online. This is a guaranteed way of leaving money on the table. Other companies try to find the price of competition and set the same price, ignoring the differentiation in products, services, and marketing, that would allow the company to charge more profitable prices.

Companies do need to know the cost of their product or service to ensure they do not accidentally set prices below cost, but cost should not be used as the base for price. Prices should always be set on the value delivered to customers. And that value can be accurately measured in pricing research, if done right.

Accurate Pricing: The Significance of Predictive Sales Analytics

Predictive Sales Analytics (PSA) is a unique method to measure willingness to pay in a marketplace. It specifically defines the customer segments (sometimes called personas or avatars) that see the highest benefit and value from a company’s products or services, consequently allowing a company to set the most profitable prices and, at the same time, enjoy a market-dominating share.

This approach comes from understanding which product or service features and benefits, marketing channels, marketing messages, sales channels, and sales methods generate the highest value perceptions among buyers in a market and consequently support the most profitable prices and highest sales volume.

Comparative Study of Conjoint Analysis Pricing Methods: Gabor Granger, Van Westendorp, and PSA

Both Gabor Granger and Conjoint methods are highly repetitive, which leads to survey takers’ fatigue and consequently high error rates. Pricing never exists in a vacuum, yet Gabor Granger presents price as though it does. It is all part of a larger context. Conjoint offers some context, but that context is very limited and does not deliver sufficiently elaborate context to adequately mimic true buyer decision behavior. The same is true for Van Westendorp PSM. The resulting advice or recommendations show four different price points and one price range, often creating more confusion than clarity for companies.

Predictive Sales Analytics provides both adequate context to the respondent and a precise price point for maximum sales volume and maximum revenue, along with advice on product features, marketing, etc., as outlined above.

Pricing for Profits

Pricing for profits allows a company to allocate more resources toward delighting their customers and keeping them happier than the competition does.

Sjofors Pricing Methods: The Difference

A doubling of sales growth and 25% – 40% higher margin. 3 – 5 times higher shareholder value. For instance, a company growing at 5% annually is likely to double its growth to 10% through the implementation of Sjofors pricing methods.

Pricing Challenges During Tough Times
During economic downturns, consumer behavior and willingness to pay change. Thus, companies need agency expertise more than ever. Smart companies understand this, while less savvy companies cut down on market research spending, to their detriment.

Transforming Companies Through Accurate Pricing

By focusing on what is most important for their clients’ buyers and non-buyers, Sjofors and Partners can advise clients to develop pricing, product, marketing, and sales strategies. This includes training programs for sales and other customer-facing individuals on how to deliver the most effective value proposition and how to best defend prices to minimize or eliminate discounting.

About the CEO & Founder

Per Sjofors, founder and CEO of Sjofors & Partners Inc. in Los Angeles, has leveraged pricing strategies to revitalize numerous companies in Europe and the US over his career spanning 35 years. Critiquing the abstract nature of pricing taught in business schools, he dedicates his career to rendering pricing strategies that are both practical and implementable. Along with being a price expert, Per Sjofors is a writer and public speaker. He is the author of “The Price Whisperer: A Holistic Approach To Pricing Power,” a best-seller in the business world. In addition to being a part of the Suite network, he is a distinguished member of the Forbes Magazine Business Council. His insights are featured across numerous podcasts, business radio shows, and major corporate events, reflecting his invaluable contribution to the industry. His global perspective on pricing has enriched over 750 clients, guiding them to significantly boost their sales and profits by comprehending the relationship between pricing and sales volume, which in turn has added billions to their bottom line.

Company Name: Sjofors & Partners, Inc
Website: www.sjofors.com
Founder: Per Sjofors
Email: hi@sjofors.com